How to design your new business for success? Don’t forget these 5 things
If you are fresh from the oven entrepreneur or playing around with the idea of starting your own venture here are five key aspects to be smart about if you want to drive your business for success.
By Emma Hertzberg
1. Think like an investor — don’t put all your eggs in one basket
Starting your own company should be seen as an investment that it is.
Founding a company is as risky as any investment. Still, this should not keep you from doing it. Contrary to what many might think, entrepreneurship itself is not too difficult or scary, you just need to stay on top of a few things and plan well.
You invest money
You will most likely need to invest your money straight into the company. If the new company isn’t making an immediate profit you will also invest the amount of capital as a salary loss by leaving your regular paycheck, and you may need to use your personal savings for maintaining your living until it does.
You invest time
It is very likely that your new venture won’t be profitable and self-sufficient from day one, so you will invest a lot of your time building, nurturing and growing it. You will never have nothing to do.
You invest intellect
You will invest your intellectual, emotional and creative capital in building a company. Sharing ideas can be seen as an investment od intellectual capita and building up team ideas you will grow the intellectual capital in the company.
When investing, you never invest all you have in just one company. The same applies to your own company. When you are starting something new and you invest a lot of time, money and effort to make it a success anyway, it might seem like the right move to go all the way. Go big or go home, right? Don’t do it. Not investing all you have can feel slightly counterintuitive and it can happen surprisingly insidiously, but you should want to keep your independence, and independence equals financial independence — you are not your company.
Disperse your energy
Make sure your life continues even if your company wouldn’t. There are always new ideas to strive towards. This will give you the freedom to be bold and brave and to stay on top of the game and not becoming the game.
It will also give you more room to try many things, iterate and fail early, which leads nicely to our second point…
2. Work like a designer — know your playground
Test your plan, iterate, trust the data you get.
Talk to people about your business idea
Not just your bubble of like-minded people. Talk to the industry professionals and have sparring sessions with new people — you will be surprised how willing people are to help you if you just ask. Ask to be challenged, challenge yourself, and learn how to grow better from constructive critique. The tips and feedback you get can sometimes make it or break it for you. Really, understand the industry you are entering into and the companies operating (and kickin’) in it.
Build on your existing knowledge
When we, my co-founder Meera Klemola and I, at Observ Agency, started to practice strategic legal design we needed to further build on our existing knowledge about the legal industry and really dig deeper to ensure that we knew it intimately — like the back of our hands. We did not stop there, we went further and spent time building our expertise in industries that frequently interact with the law, including government, corporates, non-profits, and creatives. In other words, know your industry — how it operates, how organizations work, and how people think and feel.
Don’t be the know-it-all and fail on arrogance
Ask for help and collaborate with other experts. It is refreshing when you realize and embrace the fact that you don’t have to do it all alone, and neither is that smart. There are other people who would love to join you — let them. Think about what success looks like to you and study the most successful organizations in the field. Would you be happy in their shoes?
3. Engineer it — commit to your plan 110%
Be true to your idea.
Remember what distinguishes you
After you have done your homework and familiarised yourself with the industry you are entering into and know your offering inside out don’t just look for any client, or try to solve any problem or answer to any need just because there might be some dollars to earn. Stay on course and give your 110% to what you committed to. At an early stage, what you focus on and what distinguishes you from others in the field are important factors for differentiation, finding the right clients and brand building. Magic will happen when you focus and stay on course.
Create a really detailed plan
I mean like, think about your upcoming weeks, what will you have to do on a daily basis to get to your goals? What are the real costs and where does the money come from? What will be your first-year profit expectations and is that enough? Who will buy your idea and what will be your sign to stop if all goes south? Be honest and modest when you make your plan and again, ask help if needed.
4. Be a philosopher — be true to what you stand for and why you exist
Why are you building your own company? What is the North Star that guides your decision making?
Let your values guide you
Which values do you, your clients, your employees, and your business appreciate? Do their needs match to each other? Which do you prioritize, how do you make decisions? What do you want your clients to feel when they work with you or buy your product? Will you create that experience for them? How?
How do you want to be remembered?
When you work with subcontractors or collaborate with different companies how do you want to be remembered by them? Are your values, words, and actions aligned? Openness is truly the key in 2020.
Be true to yourself
Remember to communicate your values and working methods early on in your business relationships. It is ok if a prospective client does not agree with your values or working style, it is not the right fit at this point in time. It’s always better to have 5 clients that share your values than to have 10 clients for whom you continuously compromise your values and offerings. As Bob Goff tweeted, “At the end of the day, we won’t be distracted by comparison if we are captivated with purpose.”
5. Feel good — stay mindful of your time and people around you
Cut unnecessary tasks from your daily routine and surround yourself with good relationships. Have fun, this is your moment!
Cut loose the extra weight
You will encounter a lot of different people with different views and it will be enriching, but you will also encounter people who drag you down. Cut them loose. Do it nicely remembering that you don’t need to invest your time on everyone that comes your way. As humans, we can tell when we are in a poisonous relationship. You need strong and honest relationships in your path. You need sparring, mentoring and opposite views to challenge your thinking, business model and offering.
Seek honesty
People who keep you in check when you are caught up with just too much work or waiting for that next week when it “gets more quiet” (we all know it never does).
Don’t neglect your support system
Take lunch with people you enjoy spending time with, invest in genuine and interesting relationships, and don’t skip that dinner with your mom or a younger sibling.
Many entrepreneurs are looking to make an impact but without a vision, you will just blend in
At the end of the day, whether it happens after years of planning or by somewhat accident, it is a decision to become an entrepreneur. Reasons may differ, but something that unites many entrepreneurs is the hope to have a bigger impact. Whether it’s about having an impact on what we do on a daily basis, better consumer products, or how the voting system in our country works.
Trust your vision and have courage
Try not to be something just because someone believes you should. You have chosen the freedom and responsibility of being an entrepreneur, to design your business, purpose and everyday life as it fits you and your organization and the vision of the future. Trust your professionalism and what you have to offer. Put yourself and your ideas out there. It’s about time for someone to do things a bit differently — if not you, then who?
Want to talk more about starting your own venture and creating a sustainable business strategy? Let‘s have coffee! www.observ.agency
